May 6, 2005 The Canadian Economy: Adjusting to Global Economic Forces Remarks David Dodge Ottawa Chamber of Commerce Ottawa, Ontario The year 2005 marks the 150th anniversary of the establishment of Ottawa as a city. On 1 January 1855, the logging community of Bytown was formally incorporated as a city and adopted Ottawa as its new name. Content Type(s): Press, Speeches and appearances, Remarks
Learning-by-Doing or Habit Formation? Staff Working Paper 2005-15 Hafedh Bouakez, Takashi Kano In a recent paper, Chang, Gomes, and Schorfheide (2002) extend the standard real business cycle (RBC) model to allow for a learning-by-doing (LBD) mechanism whereby current labour supply affects future productivity. Content Type(s): Staff research, Staff working papers Topic(s): Business fluctuations and cycles, Econometric and statistical methods, Economic models, Labour markets JEL Code(s): C, C5, C52, E, E3, E32, J, J2, J22
Labour Market Adjustments to Exchange Rate Fluctuations: Evidence from Canadian Manufacturing Industries Staff Working Paper 2005-14 Danny Leung, Terence Yuen The authors provide some of the first empirical evidence on labour market adjustments to exchange rate movements in Canadian manufacturing industries. Content Type(s): Staff research, Staff working papers Topic(s): Exchange rates, Labour markets JEL Code(s): E, E2, E23, F, F4
Efficiency and Economies of Scale of Large Canadian Banks Staff Working Paper 2005-13 Jason Allen, Ying Liu The authors measure the economies of scale of Canada's six largest banks and their costefficiency over time. Using a unique panel data set from 1983 to 2003, they estimate pooled translog cost functions and derive measures of relative efficiency and economies of scale. Content Type(s): Staff research, Staff working papers Topic(s): Financial institutions JEL Code(s): C, C3, C33, D, D2, D24, G, G2, G21
April 25, 2005 Understanding China's Long-Run Growth Process and Its Implications for Canada Bank of Canada Review - Spring 2005 Michael Francis, François Painchaud, Sylvie Morin In the past 25 years, China has introduced numerous reforms, gradually moving from a centrally planned economy towards a socialist market economy capable of robust and sustainable economic growth. China's increasing integration into the global economy, which has been fuelled by this recent and rapid economic growth, has already begun to affect the economies of other countries and to present challenges for policy-makers, both in China and abroad. In addition to examining the determinants of China's past and current growth, the authors consider factors that are likely to support continued growth in the future and assess the implications for both the world and the Canadian economies. Content Type(s): Publications, Bank of Canada Review articles Topic(s): Development economics, International topics
April 24, 2005 Bank of Canada Review - Spring 2005 Cover page Moroccan Coin Moulds This bronze mould from Morocco is part of the National Currency Collection, Bank of Canada. Photography by Gord Carter, Ottawa. Content Type(s): Publications, Bank of Canada Review
April 22, 2005 Borders, Common Currencies, Trade, and Welfare: What Can We Learn from the Evidence? Bank of Canada Review - Spring 2005 John F. Helliwell, Lawrence L. Schembri Recent evidence indicates that the intensity of economic exchange within and across borders is significantly different: linkages are much tighter within, than among, nation-states. These findings, however, do not necessarily imply that borders and separate national currencies represent significant barriers to trade that should be removed, since the evidence is also consistent with the alternative hypothesis, that domestic exchange is more efficient because domestic producers are better able to satisfy the requirements of local consumers, owing to common tastes and institutions and the existence of local information and social networks. Focusing primarily on trade linkages within and between Canada and the United States, the authors review the evidence on the extent to which national borders lessen the intensity of international economic linkages, primarily trade in goods and services, and the effects on domestic welfare. They also examine the evidence on the impact of common currencies on trade and welfare. They determine that, since the empirical models employed to date in this research cannot distinguish between alternative explanations of the evidence, it is not yet possible to draw firm conclusions for policy-making. Content Type(s): Publications, Bank of Canada Review articles Topic(s): Exchange rate regimes, International topics, Monetary policy framework
April 20, 2005 Opening Statement before the Standing Senate Committee on Banking, Trade and Commerce Opening statement David Dodge Standing Senate Committee on Banking, Trade and Commerce Last Thursday, we released our April Monetary Policy Report. In the report, we said that the global economy has been unfolding largely as expected, and the outlook for the Canadian economy is essentially unchanged from that in January's Monetary Policy Report Update. Content Type(s): Press, Speeches and appearances, Opening statements
April 20, 2005 Conference Summary: Canada in the Global Economy Bank of Canada Review - Spring 2005 Lawrence L. Schembri The Bank of Canada's 2004 research conference examined the real and financial linkages between the Canadian economy and the economies in the rest of the world. Although Canada has profited enormously from its openness to international trade in goods, services, and financial assets, many of the most significant shocks to the Canadian economy in recent years have come from abroad. For these reasons, understanding the extent and nature of the external linkages, their implications for the Canadian economy, and the process by which the Canadian economy adjusts to external shocks is of critical importance both for monetary policy and for monitoring the financial system. This article describes the purpose of the conference—to deepen economists' understanding of these important issues—and provides highlights of the papers presented in each of the five sessions, as well as summaries of the keynote lecture and the discussion of the policy panel. Content Type(s): Publications, Bank of Canada Review articles Topic(s): Balance of payments and components, Exchange rates, International topics
April 19, 2005 Communication: A Vital Tool in the Implementation of Monetary Policy Bank of Canada Review - Spring 2005 Paul Jenkins Remarks by Paul Jenkins, Senior Deputy Governor, Bank of Canada, to the FMAC/FMA-USA Joint Conference 2004 Content Type(s): Publications, Bank of Canada Review articles